Pomerantz Law Firm Files Class Action Lawsuit Against Futu Holdings Ltd.
Pomerantz LLP has filed a class action lawsuit against Futu Holdings Ltd., alleging securities fraud and unlawful business practices by the company and its officers.
Law firm Pomerantz LLP announced on July 9, 2026, that it has filed a class action lawsuit against Futu Holdings Ltd. for alleged securities fraud and other unlawful business practices. Investors who purchased Futu securities during the specified class period have until August 25, 2026, to petition the court to be appointed lead plaintiff.
The lawsuit stems from regulatory developments in China concerning cross-border securities trading. In May 2026, Reuters reported that China planned to penalize brokers for illegally moving money to foreign markets, including online brokers like Futu, for soliciting business without an onshore license.
Following the Reuters report, Futu's American Depositary Shares (ADS) experienced a significant price drop. The company later reported its first-quarter 2026 financial results, which included substantial penalties proposed by Chinese authorities, amounting to approximately RMB 1.85 billion (approximately $20 billion USD) in fines and confiscation of illegal gains. This news further impacted Futu's ADS price.